The softening of the Australian dollar offers a chance for expat residents to
get a foothold in the local property market

The Australian currency has depreciated by one third against sterling in the past 12 months. For expats Down Under who are paid in sterling or regularly transfer money from the UK, this could be an added incentive to consider buying Australian property, either as a home or an investment.

Australian property enquiries increased tenfold in February from the previous month for overseas property portal TheMoveChannel.com. A spokesman for the site said: "Australia is traditionally one of the most popular destinations for British expats looking to relocate, but until now has never accounted for much [property-buying] activity. Interest has also been driven by Asian investors keen to capitalise on the country´s rising house prices."

Major cities such as Sydney, Perth, Brisbane and Melbourne tend to see the most activity from British expats.

For non-Australian citizens or permanent residents, permission is likely to be needed from the Foreign Investment Review Board (FIRB) before property can be bought in their name. FIRB approval may also be needed if the residential property is sold.

Regarding mortgages, UK banks do not generally lend on Australian property so it helps if an expat has credit history with an Australian bank already. However, a British expat could consider releasing equity from their UK property to help fund the purchase, especially given the more favourable exchange rate. Potential buyers need to budget about five per cent of the purchase price to cover land transfer registration fees, legal fees and local taxes.

Visas also need to be considered before thinking about buying Australian property. There are four main types of visa (residence, temporary residence, migration and visitor). Temporary residents, who tend to be skilled migrants, are entitled to live in Australia for four years, usually after receiving sponsorship. There is also an Investor Retirement Visa which allows those over the age of 55 to stay for up to four years by investing over AU$500,000 (£273,000) into their chosen state.

Steve Douglas, executive chairman at Australian property specialist SMATS, said the only restriction is that non-resident buyers are restricted to purchasing brand-new homes.

"This protects the market and ensures economic activity and expansion of rental stock, for a growing population," he explained.